Maldives : BML Supporting Recovery of the Small and Medium Enterprise and Blue Economy Tourism Sector Project
The transaction involves a senior secured loan of up to $20,000,000, administration of a $9,000,000 loan from the Canadian Climate Fund for the Private Sector in Asia II (CFPS II), and administration of a $1,000,000 grant from the Private Sector Window (PSW)Asian Development Fund to the Bank of Maldives Plc (BML) for Supporting Recovery of the Small and Medium Enterprise and Blue Economy Tourism Sector Project in Maldives.
Project Details
-
Project Officer
Olsen, Susan
Private Sector Operations Department
Request for information -
Approval Date
28 April 2022 -
Country/Economy
Maldives -
Sector
- Finance
| Project Name | BML Supporting Recovery of the Small and Medium Enterprise and Blue Economy Tourism Sector Project | |||||||||||||||||||||||||
| Project Number | 55156-001 | |||||||||||||||||||||||||
| Borrower / Company | Bank of Maldives Plc |
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| Country / Economy | Maldives |
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| Location | Nation-wide | |||||||||||||||||||||||||
| Type or Modality of Assistance |
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| Operational Priorities | OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP6: Strengthening governance and institutional capacity |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Partnerships Private sector development |
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| Sector / Subsector |
Energy / Energy efficiency and conservation Finance / Finance sector development - Small and medium enterprise finance and leasing |
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| Gender Equity and Mainstreaming | Effective gender mainstreaming | |||||||||||||||||||||||||
| Responsible ADB Department | Private Sector Operations Department | |||||||||||||||||||||||||
| Responsible ADB Division | Private Sector Financial Institutions Division | |||||||||||||||||||||||||
| Responsible ADB Officer | Olsen, Susan | |||||||||||||||||||||||||
| Project Sponsor(s) | ||||||||||||||||||||||||||
| Description | The transaction involves a senior secured loan of up to $20,000,000, administration of a $9,000,000 loan from the Canadian Climate Fund for the Private Sector in Asia II (CFPS II), and administration of a $1,000,000 grant from the Private Sector Window (PSW)Asian Development Fund to the Bank of Maldives Plc (BML) for Supporting Recovery of the Small and Medium Enterprise and Blue Economy Tourism Sector Project in Maldives. | |||||||||||||||||||||||||
| Objectives and Scope | BML will use the proceeds of ADB's facility to support onlending to tourism corporates and SMEs that are majority owned by Maldivian residents; at least 60% of the proceeds will be onlent to SMEs and 10% to businesses owned by women. To help Maldives pursue sustainable, low-carbon development, the additional concessional loan from CFPS II and grant from the PSW will support onlending to tourism enterprises majority-owned by Maldivians for blue economy projects that promote climate change mitigation and adaptation uses. | |||||||||||||||||||||||||
| Linkage to Country/Regional Strategy | The project will contribute to the following operational priorities of ADB's Strategy 2030: (i) accelerating progress in gender equality; and (ii) tackling climate change, building climate and disaster resilience, and increasing environment sustainability. The project will help achieve the long-term cofinancing target of 2.5:1, as set out in ADB's Strategy 2030, by mobilizing JICA and OeEB parallel loans. According to ADB's country partnership strategy, 20202024, ADB's nonsovereign operations will (i) strengthen competitiveness and diversify the economic base by supporting private sector development, strengthening human development in health and education, and improving the international trade environment; and (ii) improve the quality of life of island communities while ensuring environmental sustainability by investing in clean energy, preservation of the marine environment, climate adaptation, and disaster risk management. The project complements ADB's sovereign-guaranteed operations supporting coastal resilience and increased access to renewable energy and climate change initiatives. The project is aligned with ADB's Climate Change Operational Framework 20172030 and the OFI. |
| Safeguard Categories | |
|---|---|
| Environment | FI |
| Involuntary Resettlement | FI |
| Indigenous Peoples | FI-C |
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | BML's business activities are considered to have minimal site-specific environmental impacts. |
| Involuntary Resettlement | Involuntary resettlement screening will include a review of potential displacement impacts on islands designated by the government for tourist development; any such impacts will be managed by the subborrower. |
| Indigenous Peoples | Maldives does not have any groups that self-identify as indigenous peoples and, therefore, no impacts on indigenous peoples are anticipated. |
| Stakeholder Communication, Participation, and Consultation | The enhanced environmental and social management system (ESMS) will include a framework for BML to adapt the process to ensure wide participation and consultation of potential SME borrowers, particularly female-led SMEs. |
| Timetable for assistance design, processing and implementation | |
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| Concept Clearance | 23 Jul 2021 |
| Credit Committee Meeting | - |
| Approval | 28 Apr 2022 |
| Last PDS Update | 24 Jan 2023 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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| Title | Document Type | Document Date |
|---|---|---|
| BML Supporting Recovery of the Small and Medium Enterprise and Blue Economy Tourism Sector Project: Report and Recommendation of the President | Reports and Recommendations of the President | Apr 2022 |
| BML Supporting Recovery of the Small and Medium Enterprise and Blue Economy Tourism Sector Project: Gender Action Plan | Gender Action Plans | Apr 2022 |
| BML Supporting Recovery of the Small and Medium Enterprise and Blue Economy Tourism Sector Project: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Feb 2022 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
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